Devaluation of house

dll92

Hello everyone, 
I am just after a bit of advice on this matter.

We are looking to remortgage our house with additional borrowing for house improvements. This has been agreed and we now have a formal offer.

However the offer is based on a different interest rate than the original as they have devalued our house, which means that it is costing us an extra £1,000 over the 5 year term.

We bought the house 5 years ago and it was valued by Natwest at £125k. We completely renovated it including new driveway, roof, boiler, electrics, kitchen, floors, bathroom and plastered throughout. However they are now valuing the house at £115k.

When asked for a reason they have simply told me that they don’t have a reason. I have sent them 4 examples showing houses in the area similar to ours going for £130k, and this was also the value that their own HPI gave and what we based the remortgage on but they are not willing to change the value, and just advised that they aren’t able to appeal it as we have not added an extension/square footage.

I have raised a formal complaint with them but I just have a feeling that they are going to continue to say there is nothing that they can do. All we want is a reasonable explanation as to why it’s been devalued or to put it back to the original value so we get the best interest rate.

I must add that we are only £3k away from getting the best interest rate so it’s like they have purposely valued our house even lower.

Does anyone know if we have a leg to stand on to dispute if their response is that it’s either accept or leave rather than the hassle of going elsewhere? 

Thank you for your replies in advance. 

csgohan4

adding x to house for improvements, doesn't increase it by x or above either.  You can try other lenders for sure, but if their using desktop valuations, they may come to the similar figure. By all means get a RICS valuation if you want to dispute the valuation at your own cost

if you don't like their terms, you can go elsewhere, I did when I mortgaged, I moved to another lender as their deals weren't good